Financial literacy training will help you understand your finance team so you can work together in driving your business forward. We’ve got 4 questions you can ask this week, just to show you’re a little more clued up than they thought you were.
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4 Questions To Ask Your Finance Team This Week
1. The Benefits of 'Finance for
Non-Finance Managers' Training:
4 Questions to Ask Your Finance
Team This Week
2. Question 1
What’s our average debtor collection
period?
• Should be less than 30 days
• More than 60 is cause for alarm bells
• More than 90 is a warning to shake things up
3. Question 2
What are we doing to improve it?
• Cut credit for bad customers
• Offer cash & early payment discounts
• Charge interest on overdue accounts
• Outsource collection to third parties
4. Question 3
How do we improve our working
capital ratio?
• Better debtor collection
• Clear old inventory by discounting
• Arrange some form of finance
5. Question 4
What is our inventory turnover ratio &
is it in line with industry benchmarks?
• High turnover indicates inventory is being efficiently
managed
• Fewer funds tied up in stock & more funds available
for other obligations
• Good turnover varies between industries
6. Get in touch…
Want to understand more
about your business’s finance?
Visit: www.colouraccounting.holstgroup.co.uk
Call: 0845 456 4000
Join us: